The United States has lifted its ban on the Chinese telecom giant, ZTE, that prevented it from doing business with US-based companies.
Apparently, President Donald Trump intervened – at the request of China’s President Xi Jinping, and ordered the authorities to end the ban that was imposed back in April.
The US Commerce Department says that the company has now complied with all the sanctions, but will closely keep an eye on ZTE’s operations for the future.
The company paid $1 billion in fines last month to comply with the law, and even placed $400 million in a provisional account in case of any future violations, according to the Commerce Department.
ZTE uses American-made components for manufacturing its products. The company was caught selling these components to Iran. American law prohibits this, as the components sold were worth millions of dollars. Due to this, the company was banned from doing business on US soil, and was imposed with a $1 billion penalty.
ZTE’s Return to Pakistan?
Previously, ZTE stopped serving Pakistani telecom companies right after it got banned in the US for doing business with Iran.
It halted most of its ongoing projects, while its local clients had to look for workarounds for services that were previously offered by ZTE. The Guangdong-based company has a number of clients in Pakistan, including well-known names such as PTCL, Zong, Telenor, and Jazz.
ZTE is now allowed to get its components from the US, it might mean the company’s return to Pakistan in the near future.